Garth Napier, the managing director of Old Mutual Insure, says that the transaction will satisfy a number of strategic objectives for the company, including an enhanced customer experience.
“This deal brings us closer to our goal of customer centricity, as we will be able to access a wider range of valued-added products and innovative offerings. It will also give us access to new insurance markets with low-cost products that can contribute meaningfully to our transformation strategy,” said Napier.
He explained that the transaction brings Old Mutual Insure not only the ability to rapidly test and scale new product ideas, but also access to a new customer base in the accident and health, medical insurance, as well as other niche insurance offerings such as value-added products, cash in transit, equine, marine, travel, taxi, heavy commercial vehicles, and shack insurance.
Given that Genric has a number of specialist underwriting management agencies, start-up businesses and insure-tech innovators, Napier said that Genric can help Old Mutual Insure better understand the customer of the future by designing appropriate solutions.
Since commencing operations in 2005, Genric has built up an enviable position as a specialist insurer, partnering with Underwriting Management Agencies (UMAs), brokers, and insure-tech start-ups to bring niche insurance solutions to underserved markets. Today the company is run by its founding members, MC Du Toit, the CEO, and Cornel Schoeman, the chief operating officer.
“We are pleased to start a new chapter with Old Mutual Insure. Genric has built a solid reputation as an insurer with quality niche offerings. The acquisition allows these products to reach a wider footprint. We are looking forward to seeing the expansion of the offering under the Old Mutual Insure brand. I’m excited that Genric’s profitable growth and innovation has caught the eye of one of Africa’s largest insurers,” said Du Toit.
The transaction is still subject to regulatory approvals, including Prudential Authority and Competition Commission consent.
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